Interesting comment left on the main site, especially if the commenter is legit...
1.88cpm...can it really be?
"Hi I work for Citi, first with Citibank and recently switched to Citicards. With citibank i managed programs that sent out e-mail and direct mail offers to our cards customer base, offering incentives to open a checking account. For our AA card members,we currently offer 23,500 for a citigold account or 10,000 for a citibank to targeted existed card members (ECM’s). They used to be higher but we had to lower them due to the cost of the miles. AA charges us .0188 per mile – and has for a while. We have been prepaying for several months already (they made that switch on us a few months ago). By we I mean citibank, I don’t know the deal they have with Citicards who mail out offers to open cards (that is the team I am joining soon).
When we gave out 30,000 miles that equates to $564 CPA in contra revenue expense. Compare that to the cash corrolary that we give our dividend card members ($150 cash for citigold or $100 for Citibank) and our AA customers are so much more expensive. Our “partner” charges us incredible amounts for miles… but their populations are always the most responsive which is why we keep paying up.
Dan I love your blog and can give you some information if you ever want to hit me up. In my new role with Citi cards (direct mail team) I will be part of a team managing offers tens of millions of direct mail pieces monthly, which include a few rich offer tests. Soon I will be an expert on all Citicards rewards and know what will be upcoming.
Peace,
S"
